A firm in the UK has agreed to buy goods from an importer in the USA at an invoiced price of $250,000. Of this amount, $100,000 will be payable on shipment, $75,000 one month after shipment and $75,000 three months after shipment. The quoted foreign exchange rates ($ per ) at the date of shipment are as follows. Spot 1.390 1.392 One month 1.387 1.390 Three months 1.380 1.384 The firm decides to enter into appropriate forward exchange contracts through its bank to hedge these transactions. The sterling amount that the firm will pay is _________ Select one: a. 346,525 b. 179,987 c. 347,250 d. 180,363 .

ABC Ltd is a Kenyan multinational company with a subsidiary in Uganda. The Ugandan subsidiary has an opportunity to invest in a project costing Ush 1050M. The parent company will contribute Ush 650M. The subsidiary will use Ush.250M from its Retained Earnings and Ush 150M from a 10% local loan. The initial cash outflow is ________ Select one: a. Ush.1200M b. Ush.650M c. Ush.900M d. Ush.1050M

You have just graduated from the University of Texas and are leaving on a celebratory tour to see some friends. You wish to spend USD 2,500 each in Germany, New Zealand, and Great Britain (USD 7,500 in total). Your bank offers you the following bid-ask quotes: USD/EUR 1.1204-1.1305, USD/NZD 0.67-0.69, and USD/GBP 1.90-1.95. Required: If you accept these quotes, how many EUR, NZD, and GBP do you have at departure? Select one: a. 2211.41, NZD 3623.19, 1282.05 b. 2231.35, NZD 3731.34.19, 1315.79 c. 2826.25, NZD 1725, 4875 d. 2801, NZD 1675, 4750